1.50 MnTPA pellet plant: financial closure achieved, all existing lenders approve the Rs. 720.00 crore project

Financial closure achieved for the new 1.50 MnTPA Straight-Grate Pellet Plant at Siltara, Raipur; all existing lenders have approved it.

Thu 1 Oct 2026

Appraised Project Cost

~Rs. 720.00 crore

Sanctioned Term Debt

Rs. 540.00 crore

Equity & Internal Accruals

Rs. 180.00 crore

Construction Period

24 months from first term debt drawdown

New Plant Capacity

1.50 MnTPA Straight-Grate Pellet Plant

Pellet capacity addition moves to the funding stage

The company already operates a pellet plant of 1.5 MnTPA, running at utilisation of around 90%. It proposes to add a new 1.50 MnTPA Straight-Grate Pellet Plant, along with a new Raw Material Handling System and other associate facilities, within its Integrated Steel Plant Complex at Siltara, Raipur (Chhattisgarh).

What the company has disclosed

• It has achieved financial closure for the said project.
• It has received approval from all its existing lenders for the project.

Money and how it is funded

• Appraised Project Cost: around Rs. 720.00 Crores
• Sanctioned Term Debt: Rs. 540.00 Crores
• Equity & Internal Accruals: Rs. 180.00 Crores

Timeline

• Construction period of 24 Months, commencing from the date of first drawdown of the Term Debt, which is yet to materialise.

Why the company says it is doing this

• A crucial business expansion, using iron ore from the captive iron ore mines.

How a retail investor can read this

Financial closure plus lender approval is the point at which the funding structure for a project is tied up. In this case, roughly three-fourths of the appraised cost is sanctioned term debt, with the rest coming from equity and internal accruals.

The capacity itself is yet to be built. The 24-month construction clock begins only when the first tranche of the Term Debt is drawn, and that drawdown is yet to happen. Treated as a plan, this would add one more pellet plant of the same size as the existing one, fed by captive iron ore.

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